Towards More Efficient Incentives for Agri-environment Measures in Degraded and Eroded Vineyards

Abstract

Evaluating the economic damage caused by soil erosion is important. In addition to increasing the awareness of the problem among farmers and policy makers, evaluation of the economic damage caused by erosion can promote the implementation of more sustainable soil management practices. In the present study, we describe a new approach to evaluate incentives for the adoption of agri-environment measure (AEM) in degraded and eroded vineyards. To estimate this incentive, the replacement cost (RC) and the loss of income are calculated when the vineyard is managed with conventional tillage versus a cover crop (AEM). Our findings show that the incentive could range from the loss of income due to AEM adoption to the ecosystem service benefit (RCC-RCAEM). In our case study, the incentive ranged from 315Euroha(-1) (loss of income) to 1,088Euroha(-1) (ecosystem service benefit). Within this range, the incentive amount is determined according to efficiency criteria based on vineyard slope. We also present a conceptual model of public spending efficiency that should help policy makers decide how to allocate the incentives so as to maximize the economic return associated with ecosystem services.